Agreed pstrohm, and the Fed is doing that now by expanding the allowable collateral for their loan program. Pumping more dollars into the system. They will do all they can to avoid deflation, making inflation, or should I say stagflation, the likely outcome. Plan accordingly.
You make a good point, cpco02, the Greater Depression cannot occur as long as the greenback is not backed by gold; however, inflation is a possibility. Even a greater possibility is that inflation and deflation coexist.
BTW, regarding the price of oil dropping to $40 as one poster said on this thread, it will never happen. Cheap oil is a thing of the past. In fact, tomorrow, Congress will have meetings on the ENRON LOOPHOLE, which will lead to even higher oil prices in the long term and skyrocketing alternative energy prices.
i posted here two months ago the dow would go to 8500,i now think the dow will bottom at 4500,oil at 40,gold at 150, silver at $4.If you have a job,be prepared to lose it.if you are on margin, you will be sold out.Good luck.